Nevado Resources Corporation

Nevado Resources Corporation

February 16, 2010 10:32 ET

Nevado Acquires Nicolet North and East Properties Adjoining Nevado's Nicolet Property, Bowmore's Permits and Niogold's Nicolet-South Property in Thetford Mines Mining District, Southern Quebec

MONTREAL, QUEBEC--(Marketwire - Feb. 15, 2010) - NEVADO Venture Capital (TSX VENTURE:VDO) ("NEVADO" or the "Company") is pleased to announce that the Company has signed a Letter of Intent (the "LOI") with Bertrand Brassard to acquire a 100% direct property interest in the Nicolet-North Property (246 mineral claims) and Nicolet East Property (352 pending mineral claims) (the "Properties") covering more than 33,000 hectares (330 km2). The Properties are located 10 km south and southeast of Thetford Mines (Eastern Townships, Quebec), some 150 km east of Montreal. Bertrand Brassard is a director of Nevado and this transaction is consequently a non arm-length transaction.

Thetford Mines and the southern Quebec Appalachian Belt have a century long history of mining and are known for its numerous chromite, asbestos and copper deposits. The region was the site of Canada's first placer gold rush in the 1850's, decades before the Klondike in the Yukon. Despite the fact that several gold occurrences were discovered in volcanic, intrusive and sedimentary rocks, no major bedrock sources were discovered to account for the placer gold.

The Properties are interpreted to cover sedimentary and volcanic rocks of the St-Daniel Formation, bordering the Thetford Mines Ophiolite Complex. The area was worked for base and precious metals by a number of individuals and companies since the early 1900's up until the 1960's. The work included prospecting, trenching, limited diamond drilling and artisanal mining. The Properties cover mineral occurrences with documented results of up to 1 g/t gold and 5% copper in rock samples, and up to 26 g/t gold in stream-sediment heavy mineral concentrates (Ministere des ressources naturelles et de la faune Quebec Assessment Files).

NEVADO acquired the Properties the mineral claims are adjacent to the Company's Nicolet Property and that Thetford Mines area is benefitting from a major staking rush, the result of disseminated gold discoveries. The favourable hosts comprise sedimentary, felsic volcanic and intrusive rocks in the Appalachian Belt of southern Quebec, and have been generally overlooked in the past for their gold potential but have now become significant contributors to the next generation of major new gold mineralization in Quebec, such as in the Val-d'Or-Malartic gold Camp with Osisko Mining and NioGold Mining. NioGold Mining acquired 284 mineral claims (Nicolet-South Property) adjacent to Nicolet as they intend to be part of the new Appalachian gold play.

Under the terms of the LOI, NEVADO can earn a 100% direct interest in the Properties by paying C$50,000 and issuing 510,000 common shares to the Vendor at the closing of the transaction. The Vendor retains a 2% Net Smelter Returns Royalty (the "NSR") on the Properties. The NSR is subject to a buy-back clause, whereby NEVADO can purchase 1% for C$1,000,000 at any time. Registration of the Nicolet-East mineral claims by the Quebec government is still pending, but should be confirmed shortly. Additional technical information on the Properties will be made available shortly.

The technical information in this news release was prepared, reviewed and approved by Mr. Jean Lafleur, M. Sc., P. Geo., Senior Technical Consultant to NEVADO, and a Qualified Person under NI 43-101 regulations.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. The statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements

Contact Information

  • Mr. Guy Girard, President and CEO
    Marcel Bergeron, CFO